Legit Reviews

FREMONT, Calif. — Oct. 26, 2011 and MORGES, Switzerland, Oct. 27, 2011 — Logitech International (SIX: LOGN) (Nasdaq: LOGI) today announced financial results for the second quarter of Fiscal Year 2012.

Sales for Q2 FY 2012 were $589 million, up 1 percent from $582 million in Q2 FY 2011. Excluding the favorable impact of exchange rate changes, sales declined by 2 percent year over year. Operating income was $23 million compared to $51 million in the same quarter a year ago. Net income for Q2 FY 2012 was $17 million ($0.10 per share) compared to net income of $41 million ($0.23 per share) in Q2 of FY 2011. Gross margin for the quarter was 33.7 percent, down from 37.3 percent one year ago.

Logitech’s retail sales for Q2 FY 2012 increased by 2 percent, with an increase in Asia of 22 percent, and a decrease in the Americas and EMEA of 1 percent. OEM sales decreased by 17 percent. Sales for the LifeSize division grew 19 percent.

“Our Q2 results are consistent with our expectations and the full-year outlook we presented on September 22,” said Guerrino De Luca, Logitech chairman of the board and acting president and chief executive officer. “As we focus on reinvigorating our product offerings and executing in sales and marketing, we expect our initiatives will begin to contribute to improved performance as we move through the second half of FY 2012.”

Share Repurchase Program
Logitech has applied for an amendment of its $250 million buyback program to enable the future repurchase of shares for cancellation. The amendment is subject to the approval of the Swiss regulatory authorities. The Company has approximately $177 million remaining under the program after repurchasing approximately 7.6 million shares for a total of $73 million during Q2 FY 2012.

Outlook
For Fiscal Year 2012, ending March 31, 2012, the Company continues to expect sales of approximately $2.4 billion and operating income of approximately $90 million. The gross margin for the full year, which factors in the very low margin previously reported for Q1, is estimated to reach approximately 33 percent. Gross margin in both Q3 and Q4 is expected to be well above the full year average.

Prepared Remarks Available Online
Logitech has made its prepared written remarks for the financial results teleconference available online on the Logitech corporate Web site at http://ir.logitech.com. The remarks are posted in the Calendar section on the Investor home page.

Financial Results Teleconference and Webcast
Logitech will hold a financial results teleconference to discuss the results for Q2 and the Company’s outlook on Thursday, Oct. 27, 2011 at 8:30 a.m. Eastern Daylight Time and 14:30 Central European Summer Time. A live webcast of the call will be available on the Logitech corporate website at http://ir.logitech.com.

About Logitech
Logitech is a world leader in products that connect people to the digital experiences they care about. Spanning multiple computing, communication and entertainment platforms, Logitech’s combined hardware and software enable or enhance digital navigation, music and video entertainment, gaming, social networking, audio and video communication over the Internet, video security and home-entertainment control. Founded in 1981, Logitech International is a Swiss public company listed on the SIX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI).